Xeros looks at possible flotation

XEROS, the Leeds university spin-out that has devised a way of reducing the amount of water used by washing machines, is understood to be looking into further fundraising opportunities which could include a flotation.

According to a report in The Sunday Times, Xeros could soon float on the stock market and has hired New York-based investment bank Jefferies to look into its options.

Compared to conventional washing machines, Xeros says its systems demand less time and typically more than 70% less water, 50% less energy and 50% less detergent.

The Xeros system comprises a special washing machine designed to release patented polymer beads into the drum for cleaning, and which then removes the beads from the clothes once the cleaning process is complete. The dirt from soiled items is attracted and absorbed by the beads, producing cleaner results than “soap and water” washing methods.

Current Xeros partners include Johnsons Services Group and premium dry cleaners Jeeves of Belgravia.

Last year, Xeros raised £10m to speed up the roll-out of its commercial laundry system and finalise the development of a domestic version.

Invesco Perpetual managed funds led the round, investing £6m. Directors and existing investors in Xeros invested £4m, including IP Group, Entrepreneurs Fund, Enterprise Ventures’ RisingStars II Fund, Finance Yorkshire, and Parkwalk Advisors.

Xeros, based in the Advanced Manufacturing Park near Rotherham, is commercialising the technology which originally came out of pioneering work by Professor Stephen Burkinshaw at Leeds University’s Textile Design Department.

Nobody from Xeros was available for comment.